What type of economy does Samoa have?

The type of economy in Samoa can be highlighted as being a mixed economy, mostly open and small with dependence on agriculture, fisheries, tourism, as well as remittances that are envisaged from abroad. Such an economy is then considered to combine subsistence activity along with a growing service, especially the tourism sector. While agriculture is important, with crops including taro, coconuts, and bananas, the sector is susceptible to exogenous factors of change-for example, climate change-which may lower outputs and export capabilities. Agriculture is the livelihood for a majority of the people but is constrained by Samoa's relatively small land area.

Tourism significantly has contributed to the major part of the GDP and thus the critical role of job creation and foreign exchange. It especially attracts visitors to Samoa because of its beautiful nature and rich cultural experiences, therefore providing a backbone for the Samoan economy. However, the type of economy Samoa operates has it that their economic performance usually fluctuates when events beyond their control-plant disasters, global economic downturns-affect tourist traffic to their shores.

A large part of the household income derived from the Samoan family working abroad reflects the impact of migration on the economy. These remittances undergird local consumption and become a key stabilizing factor for so many families. Foreign aid and grants remain part of their type of economy and keep on supporting their infrastructure development and public services, as the country still depends on financial assistance from its international partners.

Overall, the Samoan economy is combined; the traditional and modern sectors are included. It is highly dependent on factors outside of its economy, such as tourism, remittances, and foreign aid. This kind of structure provides a base for the economy but also provides some problems in terms of attainment of long-term and self-sustained economic growth.